Romanian Govt, Unions, Employers Fail To Agree On 2011 Minimum Wage

Dan Matei Agaton, from the Industry Employers’ Confederation (CONPIROM), said employers are willing to accept a minimum wage level higher than 700 lei (EUR1=RON4.2912), but only if it is not pegged to the unitary wage grid and is matched by a lower flat tax.

The employers’ representatives said the Government has not put forward a figure for next year’s minimum wage, but their opinion is the Executive is prepared to increase it from its current level.

National Union Bloc vice-president Ovidiu Jurca said the unions continue to endorse setting the minimum wage to at least RON750, but received only silence from the Ministers of Labor and Finance. Jurca said unions and employers might start work on the national labor contract, stipulating a minimum wage of at least RON700.

The Government will seek the lawmakers’ confidence vote to pass the public sector wage bill. Prime Minister Emil Boc said the Government will send the wage law package to Parliament Monday, November 22, to start confidence vote procedures. He said the package includes two acts, a frame law on state employees’ salary grids for 2011 and a law applying the wage grids.

The Government agreed with the International Monetary Fund and European Commission not to raise the minimum wage by more than the rate of inflation of the last two years, or more than RON670, said state secretary Gheorghe Gherghina. According to him, 71,000 public sector employees receive minimum wage. He also said that, should trade unions and employers’ associations agree on a minimum salary to be provided by the national collective labor contract, say RON750, it will not apply to public servants.

Last week, Prime Minister Emil Boc said the minimum wage will be increased to a level set following talks with unionists, adding the country’s new unitary salary law will allow a slight increase in public sector salaries in 2011, if the budget allows it. IMF mission head Jeffrey Franks said a final decision on the level of the minimum wage will be made after the Romanian Government holds talks on the matter with social partners, employers’ associations and unionists.